Nifty 50 and Sensex recover from day’s low, pare sharp losses amid IT support; Nifty Trades Above 25,600

Market Update at 2:31 PM: The Indian equity benchmarks, the Nifty 50 and the Sensex, pared most of their Intraday losses on Thursday, April 2, supported by gains in IT stocks. The recovery came after a weak start, with indices rebounding significantly from the day’s lows.

As of 14:21 IST, the Nifty 50 was trading at 22,654.80, down 0.11 per cent or 24.60 points, while the Sensex stood at 73,063.29, lower by 0.10 per cent or 71.03 points.

Earlier in the session, both indices had fallen over 2 per cent after U.S. President Donald Trump warned that the U.S. would hit Iran hard in the next two to three weeks, dampening hopes of an early ceasefire in the Middle East. However, his simultaneous remarks about ongoing discussions with Tehran and a potentially short-lived conflict created mixed signals, unsettling investor sentiment.

Despite the volatility, the Nifty 50 recovered sharply from the day’s low levels in afternoon trade, indicating buying interest at lower levels.

Broader markets also trimmed losses, with the Nifty MidCap and Nifty SmallCap indices trading lower by 1.79 per cent and 1.73 per cent, respectively.

On the sectoral front, Nifty IT emerged as the only gainer, providing support to the benchmarks. On the other hand, the Nifty PSU Bank and Nifty Construction Durable indices were among the top laggards.

Among individual stocks, Tata Chemicals shares surged over 10 per cent, attracting strong investor interest.

Meanwhile, Brent crude prices spiked following Trump’s comments, as market participants grew concerned about potential disruptions in oil supply through the Strait of Hormuz. Brent’s April contract rose 7.2 per cent to USD 108.45 per barrel.

Market Update at 01:13 PM: The Nifty 50 and the Sensex traded sharply lower on Thursday as traders turned cautious following U.S. President Donald Trump’s address, which heightened geopolitical concerns.

The Nifty 50 declined 315.60 points, or 1.39 per cent, to trade at 22,363.80, while the Sensex dropped 988.32 points, or 1.36 per cent, to 72,143.24. Notably, the Nifty 50 recovered over 200 points from its intraday low, indicating some buying interest at lower levels.

Investor sentiment weakened after Trump stated that the U.S. would strike Iran hard over the next two to three weeks, dampening hopes of an early ceasefire in the Middle East. He also added that discussions with Tehran are ongoing and the conflict may not last long. These mixed signals further unsettled market participants.

Among Nifty 50 constituents, Eternal, Jio Financial Services, and Asian Paints emerged as the Top Losers. Meanwhile, Tata Chemicals shares surged over 10 per cent, standing out amid the broader market weakness.

Volatility surged in early trade, with the Nifty India Volatility Index (VIX) rising 6.36 per cent to 26.60.

Broader markets underperformed the benchmark indices. The Nifty MidCap index fell 2.03 per cent, while the Nifty SmallCap index declined 2.17 per cent.

On the sectoral front, the Nifty Pharma index was the worst performer, falling over 3 per cent. The Nifty PSU Bank and Nifty Realty indices also witnessed significant selling pressure. In contrast, the Nifty IT index showed relative resilience, emerging as the top performer with comparatively lower losses.

In the commodities market, Brent crude prices surged following Trump’s remarks, as investors anticipated potential disruptions in oil supply from the Strait of Hormuz. Brent’s April contract jumped 5.8 per cent to USD 107 per barrel.

Market Update at 12:13 PM: Indian benchmark indices traded sharply lower as investor sentiment turned cautious following U.S. President Donald Trump’s address, which heightened geopolitical concerns.

The Nifty 50 declined 1.76 per cent, or 399.85 points, to trade at 22,278.10, while the Sensex dropped 1.75 per cent, or 1,303.99 points, to 71,855.85 during the session.

Market sentiment weakened after Trump warned that the U.S. could strike Iran heavily over the next two to three weeks, dampening hopes of an early ceasefire in the Middle East. At the same time, he indicated that discussions with Tehran were ongoing and that the conflict may not last long. The mixed signals added to market uncertainty and kept traders on edge.

Among Nifty 50 constituents, Sun Pharmaceutical Industries, InterGlobe Aviation, and Eternal emerged as the top losers.

Volatility surged sharply, with the Nifty India Volatility Index (VIX) rising 6.36 per cent to 26.60 shortly after market opening, indicating heightened fear among investors.

Broader markets underperformed the benchmark indices, with the Nifty MidCap index declining 2.03 per cent and the Nifty SmallCap index falling 2.17 per cent.

On the sectoral front, the Nifty Pharma index was the worst performer, dropping over 3 per cent. The Nifty PSU Bank and Nifty Realty indices also witnessed notable declines. Meanwhile, the Nifty IT index showed relative resilience and emerged as the top performer with comparatively lower losses.

In the commodities market, Brent crude oil prices surged 5.8 per cent to USD 107 per barrel following Trump’s remarks, as investors anticipated potential disruptions to oil supply through the Strait of Hormuz amid escalating tensions.
 

Market Update at 09:28 AM: Indian markets opened sharply lower on Thursday as traders reacted to U.S. President Donald Trump’s comments on escalating tensions with Iran. The Nifty 50 fell 1.9 per cent or 452.40 points to trade at 22,227, while the Sensex declined 1.92 per cent or 1,404.50 points to 71,729.34 as of 9:16 AM.

President Trump stated that the U.S. would hit Iran hard in the next two to three weeks, dampening hopes of an early ceasefire in the Middle East. He also mentioned that discussions are ongoing with Tehran and suggested the conflict may not last long. The mixed messaging from Washington created uncertainty and added to market nervousness.

Brent crude prices surged in response to Trump’s address, with expectations that tensions in the Strait of Hormuz could disrupt oil supplies. The April Brent contract rose 3.54 per cent to USD 104.74 per barrel, further weighing on investor sentiment.

Pre-Market Update at 7:44 AM: Indian benchmark indices, the Sensex and Nifty 50, are likely to open lower on Thursday, April 2, as investor sentiment turned cautious after U.S. President Donald Trump warned of intensified military action against Iran over the next two to three weeks.

As of 7:25 am, GIFT Nifty was trading around the 22,437 level, down over 400 points from the previous close of Nifty futures, indicating a significant gap-down start for the Indian stock market.

Asian markets also traded lower, reflecting the weak global cues, even as Wall Street ended higher overnight, supported by gains in heavyweight stocks.

Asian markets were under pressure on Thursday. Japan’s Nikkei 225 fell 1.29 per cent, while the Topix declined 0.72 per cent. South Korea’s Kospi dropped 3.93 per cent and the Kosdaq slipped 2.67 per cent. Hong Kong’s Hang Seng index was also down 0.73 per cent in early trade.

In a key geopolitical development, U.S. President Donald Trump said that the U.S. could intensify its offensive against Iran over the next two to three weeks. In a televised address, he noted that American forces are close to achieving their strategic objectives and would “finish the job” soon, raising concerns among global investors.

Meanwhile, Japanese government bond yields edged higher, with the 10-year yield rising 1 basis point to 2.31 per cent after three consecutive sessions of decline. The 5-year yield also increased by 1.5 basis points to 1.745 per cent.

Crude oil prices moved higher following the geopolitical tensions. Brent crude rose 1.45 per cent to USD 103 per barrel, while U.S. WTI crude gained 0.91 per cent to USD 101.34 per barrel.

In the currency market, the U.S. dollar remained largely steady in thin trading. The dollar index was little changed at 99.56 after declining 0.3 per cent in the previous session.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.83. On the Put (PE) side, the 22,500 and 22,000 strikes have significant open interest, indicating strong support levels. On the Call (CE) side, the highest open interest is concentrated at the 23,000 strike, suggesting a strong resistance level.

Technically, 22,300 is likely to act as immediate support for the Nifty 50, while 22,632 is expected to act as resistance. A sustained move above this level could push the index towards 23,000.

There are no stocks in the F&O ban list for April 2.

Institutional activity remained skewed towards selling by foreign investors. On April 1, Foreign Institutional Investors (FIIs) sold equities worth Rs 8,331.15 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 7,171.80 crore. FIIs have now been net sellers for 22 consecutive trading sessions.

On Wednesday, the Indian stock market snapped its two-day losing streak and ended with strong gains. The Sensex surged 1,186.77 points, or 1.65 per cent, to close at 73,134.32, while the Nifty 50 rose 348.00 points, or 1.56 per cent, to settle at 22,679.40.

In the U.S., markets closed higher on Wednesday. The Dow Jones Industrial Average gained 0.48 per cent to 46,565.74, while the S&P 500 rose 0.72 per cent to 6,575.32. The Nasdaq Composite outperformed, climbing 1.16 per cent to 21,840.95.

Among key stocks, Nvidia rose 0.75 per cent, AMD advanced 3.33 per cent, and Alphabet gained 2.79 per cent. Tesla also added 2.79 per cent, while Intel surged 8.8 per cent. Intuitive Machines jumped 9 per cent, Planet Labs gained 10 per cent, and Rocket Lab rose 2 per cent. Eli Lilly advanced 3.8 per cent, while Nike declined sharply by 15.5 per cent.

In commodities, gold prices declined from a two-week high, with spot gold falling 1.48 per cent to USD 4,686.18 per ounce. Spot silver also dropped 3.03 per cent to USD 72.79.

Disclaimer: The article is for informational purposes only and not investment advice.